Expatriate managers' personal financial insecurity indirectly thwarts team innovation: The role of state learning goal orientation

Abstract

AbstractThis paper studies the downstream effect of expatriate managers' personal financial insecurity on team innovation. Building on resource allocation theory, we propose a moderated serial mediation model. Using four‐wave, multi‐source survey data from 99 R&D expatriate teams within large technology companies in emerging markets, we find that expatriate managers' personal financial insecurity is negatively related to team innovation first through a lower level of state learning goal orientation in the last month, and subsequently through a lower level of intellectual stimulation behavior. The negative effect of expatriate managers' personal financial insecurity on state learning goal orientation is weakened when professional identification is higher (vs. lower). Theoretical and practical implications are discussed.